Inauguration of 100 days Master plan for the Development of Islamic Microfinance industry

Under the umbrella of Islamic microfinance Network (IMFN), a special meeting of Islamic microfinance institutions was held at the capital city of Pakistan, Islamabad, today, presided by Dr. Amjad Saqib,  Executive Director Akhuwat and Chairperson IMFN, in which large number of local and International Islamic microfinance institutions took part. The rationale of this special meeting was to endorse 100 days master plan for the develop,ent of national and international microfinance institutions while uniting the Islamic microfinance institutions at signle platform, resolving the interrelated issues and the barriers.

Chief Executive Officer of Alhuda CIBE & Islamic Finance Network, Mr. Muhammad Zubair Mughal, while expressing the need and characteristics of 100 days plan, said, in analysis of the growing expansion of Islamic microfinance in the world, there is an alarming need to give Islamic microfinance industry a obvious strategy and track so that Islamic microfinance institutions may carry out the mission of poverty diminution in a brand line of action. He stated that Islamic microfinance has become an imperative need to alleviate poverty. In this perspective, Islamic Microfinance Network has designed 100 days master plan. For the advancement of Islamic Microfinance, this plan incorporates the linkages with international microfinance networks, platform for exchange of ideas and dialogues with donors about Islamic microfinance, Shariah guidance to Islamic microfinance industry, Islamic Micro Finance awareness campaign through media and it also includes structuring of standards on Islamic Micro finance.

He further said that if International multi literal organization i.e. World Bank, UNDP, USAID, IFC, GIZ etc. seriously want to eradicate poverty from the world, then they will have to include Islamic microfinance in their preference strategy. Based on current situation, the achievement of Millennium Development Goal ( MGD’s) for poverty alleviation of the United Nations seems impossible and one of the main reasons for this is not including Islamic microfinance in their poverty alleviation strategies. It is estimated that approximately half of world’s poverty reside in Muslim countries and Muslims avoid using conventional microfinance facilities due to interest, which is strictly prohibited in Islam. Hence, there is a need to introduce such microfinance services in Muslim countries which are compatible with their religious, cultural and social values. If this is not done, the world poverty will keep on increase and this can be easily proven by assessing the poverty statistics of last 10 years.

It was also decided during the meeting that AlHuda CIBE will develop guiding principle on Salam, Murabaha and Mudarabah for Islamic Microfinance Network, which will be a source of guidance for institutions related with Islamic microfinance. 100 days master plan will be initiated on 30^th May, 2013 and on its completion a general meeting will be organized to evaluate the achievement of Master plan related targets#